Читать книгу Cryptocurrency All-in-One For Dummies - Peter Kent, Kiana Danial - Страница 22

If you’re interested in cryptocurrency investing, you may just want to buy some cryptocurrencies and save them for their potential growth in the future. Or you may want to become more of an active investor and buy or sell cryptocurrencies more regularly to maximize profit and revenue. As discussed in Book 5, Chapter 4, you can select cryptocurrencies based on factors like category, popularity, ideology, the management behind the blockchain, and its economic model.

Even if your transaction is a one-time event and you don’t want to hear anything about your crypto assets for the next ten years, you still must gain the knowledge necessary to make the following decisions:

 What to buy

 When to buy

 How much to buy

 When to sell

If you’re not fully ready to buy cryptocurrencies, no worries. You can try some of the alternatives to cryptos: initial coin offerings and stocks (see Book 5) or mining (see Book 6). To learn more about two well-known cryptocurrencies — Bitcoin and Ether — before investing in either one, head to Books 3 and 4, respectively.

Over 5,000 cryptocurrencies are out there at the time of writing, and the number is growing. Some of these cryptos may vanish in five years. Others may explode to over 1,000 percent of their present value and may even replace traditional cash. Chapter 4 of this minibook covers all different types of cryptocurrencies, including Ethereum, Ripple, Litecoin, Bitcoin Cash, and Stellar Lumens.

Because the crypto industry is pretty new, it’s still very hard to identify the best-performing cryptos for long-term investments. That’s why you may benefit from diversifying among various types and categories of cryptocurrencies in order to manage your risk. By diversifying across 15 or more cryptos, you can stack up the odds of having winners in your portfolio. On the flip side, overdiversification can become problematic as well, so you need to take calculated measures. Flip to Book 5, Chapter 5 for more on diversification.

When you’ve narrowed down the cryptocurrencies you like, you must then identify the best time to buy them. In 2017, many people started to believe in the idea of Bitcoin and wanted to get involved. Unfortunately, many of those people mismanaged the timing and bought when the price had peaked. They had to settle for buying fewer bits of Bitcoin (pun intended) and also had to sit on their losses and wait for the next price surge.